Essay about Erpsim Game Report for Distribution Game

• Net profit margin has been negative and no major patterns over the 9 year period on net profit since the trend of the industry is based mostly on economic factors, and whether or not they secure contracts. Due to high percentage of COGS they are only left with a net profit of $980 or

Although the company did show an increased gross profit of $8,255,000 with $6,358,000 less Net Sales in 2013 versus 2012, that increase is due to the reduction in product Cost of Goods Sold by $14,613,000. Since increases in product price will negatively affect sales, one of management’s primary goals is to keep prices stable. This objective is achieved through implementation of cost cutting programs, investing in more efficient equipment, and automation of more steps in the production process.

Three key issues contributed to the disappointing sales. First, internal organizational challenges prohibited the growth of the line. Rigid

I was pretty confident that our sales would justify the additional office and salary expense. However, as I looked at the pro forma statements it became very apparent that the sales force would sell more unit than the plant could produce. In hindsight, I should have increase production in Quarter 2 so I could keep up with future sales in Quarter 4. As a result, I did not hire new sales people but I fine tuned my advertising by copying my competitors and increased the advertising budget from $198,598 to $311,897. The pro forma income statement showed total revenues at $8,280,065 which was jump from $6,888,870. My operating profit also increased from $1,104,794 to $1,658,769. I was content with the slow but steady growth.

I decided to track financial performance metrics to assess the performances. For this year, I realized that my %change (Net Profit/Net Sales) was suffering starting with the first quarter and getting worst in the fourth quarter. My numbers from the first quarter to the fourth were -38%, -44%, -40%, and -161% respectively.

The company ended in the last place, and we know that there are areas of opportunities. In spite of this, out of the five performance areas, our weighted average scores were above the investor expected standards for Y2015. On the other hand, we never meet the image rating score of 70, and our EPS fell

Although the company made strategy through original cost system, it is still unclear why the profit was declining. Might be some problem when the company was allocating the cost on both lines, and the methods to allocate will route a wrong strategy for the company.

Profitability ratios decreasing from 2005 to 2006 although the sales has increased substantially and the net income as well but not in the same percentage of increase due to the high reliance on debt as the interest expense increased as mentioned before.

After closely reviewing the financial and production data, our accounting team has found that your traditional cost allocation is faulty and misleading. The costs of products A and C were over allocated and products B and D were under allocated causing deceptive information on the true profits of the company. Also, product B appears to be

Operating profit margin figures in the table above show the return from net sales[13]. However profit margin ratios are high enough for the 3 years, there is a fall from 12.86% to 11.26% during 2011-12. Sales revenue increases with a higher rate than gross profit so there is a poor

Also, the gross profit had a lower increase(+9.67%), that means the cost of sales increased more than the revenue increase in term of percentage. There was a 13.16% rose in net operating expense as both selling and distribution costs and administrative expenses increased. One of the reasons why net operating expense increased because the firm had a programme of reinvesting for organic growth which supply chain, IT and store portfolio had improved. The rose of the net operating expense lead to a 2.13% drop in the operating

Revenue has increased by 5.7% but profit has balloon up to 208.1% since 2010. This may because of major business process re-engineering. The question may arise that the quality of the product might hurt by reducing the operating and non-operating costs. Further steps should be taken to investigate and cure the quality matter to stabilize the revenue.

d. Keda was very much unable to meaningfully assess cost and profitability potential. This got worse as time

Picture if you will a group of people making decisions. The decisions that are made do not have to be significant at all. They have to be just significant to the situation at hand. This concept is considered to mathematicians as Game Theory. Game Theory is broken down into tree different types of games. As stated by Thomas S. Ferguson of UCLA “There are three main mathematical models or forms used in the study of games, the extensive form, the strategic form and the coalitional form”. Some games that are the most popular to being discussed in Game Theory are chess, checkers, and tic-tac-toe (Ferguson). There are also different terms that are used in this theory as well. Some of the major terms are The Nash Equilibrium,

Objective Regain blackberries 20% lost market share, and improve overall net profit vs. last year by 13%